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Nosak Distilleries laments high cost of funds

BY PETER EGWUATU

Ahead of its proposed plans to go public and get listed on the Nigerian Stock Exchange (NSE) as well as its certification by Standard Organisation of Nigeria (SON), Nosak Distilleries Limited, has lamented the high cost of sourcing funds from the banks, and called on the Federal Government through the Central Bank of Nigeria (CBN) to find a way of reducing interest rate.

Managing Director/CEO, Nosak Distilleries, Mr. Edwin Ibube, revealed this in Lagos, on Wednesday, saying the greatest challenge facing the company is the high cost of sourcing fund from banks.

According to him, “Manufacturers find it difficult to cope with interest rate as higher as 15 per cent, so we want government to provide intervention funds that will help manufacturers to continue production in large scale which will lead to creation of jobs for Nigerians.”

He commended President Goodluck Jonathan for the intervention fund from the Bank of Industry (BOI). Ibube, stressed that Nosak would be honoured by SON on the award of NIS 1SO 9001: 2008 certificate.

According to him, “The Quality Management System in accordance with the requirements of NIS ISO 9001: 2008 was established, documented and is being implemented and maintained.”

On its plan to go public, he said, “We are preparing this company to access the capital market in order to tap the abundant benefits, especially long term funds that will help us expand our production capacity. Very soon we will soon go public as arrangement has reached an advanced stage.

“The company commenced operation in July 2002, and specialised in the production of high purity beverage grade ethanol , with a daily production capacity of 100,000 litres. The plant was increased to 250000 litres per day with the commissioning of the 2nd plant in October, 2007. To maintain our leadership position in the industry, the 3rd plant was commissioned in February 2012.”

Ibube, disclosed that the company has invested a total of N6 billion with employment of 250 staff, stressing that the increase in the plant capacity will generate additional 450 jobs.

In his words, “Apart from cutting edge technology and new equipment in our processes, we believe in manpower training and development to meet growing industry challenges.

Nosak Distilleries is currently the largest producer of beverage grade ethanol in Africa that serves the needs of industries such as: Pharmaceutical, Cosmetics, Alcoholic beverages, Blenders, Hospitals, Paint, Lacquers etc.”


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